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Feb 11, 2013
02/13
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the economy grows if the deficit goes down. shrinks if the deficit goes up. you argue the deficit doesn't matter now. do you disagree with the government projections? >> the cbo report is reasonable. it says that we wish we had lower debt. if we look at the long-term it would be nice to pay down the debt but it doesn't show a crisis. trying to slash the deficit now will deepen the clear and a present danger which is high unemployment and on going economic slump. i thought -- i found the cbo report supportive of what i'm saying. our priorities should be jobs, not the deficit. >> i want your reaction to something dave camp told us, chairman of the house ways & means committee. he said we need an equitable approach to cutting and spending. i want your reaction to it. >> sure. >> what we need now is the ekd part of the balanced approach the president called for in december. the beginning of reigning in debt and deficits. on the president's commission, they said when the debt gets to this level of the economy it costs us millions of jobs. >> yeah. so there is not
the economy grows if the deficit goes down. shrinks if the deficit goes up. you argue the deficit doesn't matter now. do you disagree with the government projections? >> the cbo report is reasonable. it says that we wish we had lower debt. if we look at the long-term it would be nice to pay down the debt but it doesn't show a crisis. trying to slash the deficit now will deepen the clear and a present danger which is high unemployment and on going economic slump. i thought -- i found the...
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Jan 14, 2013
01/13
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if the issue is deficit reduction, getting our deficits sustainable, over time, getting our debt in a sustainable place, then, democrats and republicans in congress will have a partner with me. we can achieve that, and we can achieve it fairly quickly. i mean we know what the numbers are. we know what needs to be done. we know what a balanced approach would take and we've already done probably more than half of the deficit reduction we need to stabilize the debt and the deficit. there's probably been more pain and drama in getting there than we needed. and so finishing the job shouldn't be that difficult. if everybody comes to the conversation with an open mind, and if we recognize that there's some things like not paying our bills that should be out of bounds. i'm going to take one last question. jackie. >> i'd like to ask you, now that you've reached the end of your first term, starting your second, about a couple of criticisms. one that's longstanding, another more recent. the long-standing one seems to have become a truism of sorts that you and your staff are too insular, that you
if the issue is deficit reduction, getting our deficits sustainable, over time, getting our debt in a sustainable place, then, democrats and republicans in congress will have a partner with me. we can achieve that, and we can achieve it fairly quickly. i mean we know what the numbers are. we know what needs to be done. we know what a balanced approach would take and we've already done probably more than half of the deficit reduction we need to stabilize the debt and the deficit. there's...
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Feb 8, 2013
02/13
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in many ways between the fed and the deficit spending on the deficit level, even though it's going to be smaller this year, it's hard to beat, that so i think the sequester, where we really demonstrate that the growth in many ways is paid for because when you stop it's going to take away jobs, those kind of black reality swans will be the issue for the market ahead. >> brian gendron, where are you on this and how do you want to be invested? >> we don't think this rally is over entirely. if you extrapolate a 5% or 6% return we've had so far this year, we'll have one of the greatest stock markets of all time in the face of, you know, good earnings but not great earnings, in the face of still slow growth. i think that's a little unrealistic so we'll probably get a little bit of a pullback, unusual if we didn't. still recommending a substantial allocation to equities. this year looks like last year, political uncertainty. last year was a good year for stocks. as for stocks versus bonds, i've been thinking it was the end of a 30-year bull market in bonds for the past three years. by the sa
in many ways between the fed and the deficit spending on the deficit level, even though it's going to be smaller this year, it's hard to beat, that so i think the sequester, where we really demonstrate that the growth in many ways is paid for because when you stop it's going to take away jobs, those kind of black reality swans will be the issue for the market ahead. >> brian gendron, where are you on this and how do you want to be invested? >> we don't think this rally is over...
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Apr 22, 2013
04/13
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spanish deficit was up to 10.6% of gdp. stephane joins us now live from madrid. >> there is no surprise. 10.6% of gdp. there's a reason behind it. it's the cost of bailing out the spanish banking sector. eurostadt did not give the details about the calculation, but without the cost of bailing out the banking sector, the deficit was 6.9% of gdp, which is higher than the 3% target set by the government, but of course that would be much lower than the 10%, for instance, deficit that we've seen in greece last year as a result, of course, the spanish debt is rising. it's now 84.2% of the spanish gdp. that's a sharp increase if you compare to the level before the prices in spain. and there's a paradox in that announcement. yes, we've seen some positive reaction on the bond market. the other part is that it will actually help the government to ask for more time to reduce its public deficit below 3% of ggdp. the new target will be 2016, two years later than expected, and that will give the government a bit of precome, a bit of marg
spanish deficit was up to 10.6% of gdp. stephane joins us now live from madrid. >> there is no surprise. 10.6% of gdp. there's a reason behind it. it's the cost of bailing out the spanish banking sector. eurostadt did not give the details about the calculation, but without the cost of bailing out the banking sector, the deficit was 6.9% of gdp, which is higher than the 3% target set by the government, but of course that would be much lower than the 10%, for instance, deficit that we've...
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Feb 11, 2013
02/13
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we have done $2.5 trillion in deficit. it's brought the deficit down, but not enough. we're not under 3% as a percentage of our economy and our -- >> gene, we still have $16.5 trillion in debt. let's talk about the here and now. the $16.5 trillion in debt. it's getting higher, not lower. our audience knows this. >> marimaria, obviously your audience what they care about is as a country to have a stable debt as a percentage of their economy. is their deficit below 3% so that your debt as a percentage of your economy is coming down and stabilized. that's what gives people confidence to invest. and that's been the goal i think of both parties. now, we have lowered the deficit. the projection of deficit as percentage of our economy. but we're seeing it's not enough. that's why this president is willing to go forward with an additional $1.8 trillion in deficit reduction which is what was the remaining amount that was on the table when he was speaking with speaker boehner and negotiating. now, the president's still willing to put that offer on the table with all the difficul
we have done $2.5 trillion in deficit. it's brought the deficit down, but not enough. we're not under 3% as a percentage of our economy and our -- >> gene, we still have $16.5 trillion in debt. let's talk about the here and now. the $16.5 trillion in debt. it's getting higher, not lower. our audience knows this. >> marimaria, obviously your audience what they care about is as a country to have a stable debt as a percentage of their economy. is their deficit below 3% so that your...
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Sep 13, 2013
09/13
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and we are reducing, as well, nominal deficits, structural deficits. we have a new labor market. we are cutting on expenditures. we are reforming our pension systems. we are trying to create a more competitive economy. we are reducing the cost of labor. this is a huge plan. i know that it takes time. the results are there, economically, socially. >> he is confident about the economic recovery to lower forecasts and raise the deficit target. he thinks france is on the track track. >> stephane, thank you so much for that. >>> a reminder of your headlines this morning, #twitteripo. the u.s. and russia agreed to reconvene at the end of september after what secretary of state john kerry calls constructive talks on syria. >>> and eurozone finance ministers try to hammer out the details of the banking union. >>> welcome back to the show. here is a check off u.s. futures. the s&p 500, the dow jones and the nasdaq have seen opening slightly higher with fair values taken into account. so looking at the implied open we're looking for a marginal push to the outside. this is after in yesterda
and we are reducing, as well, nominal deficits, structural deficits. we have a new labor market. we are cutting on expenditures. we are reforming our pension systems. we are trying to create a more competitive economy. we are reducing the cost of labor. this is a huge plan. i know that it takes time. the results are there, economically, socially. >> he is confident about the economic recovery to lower forecasts and raise the deficit target. he thinks france is on the track track. >>...
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Feb 5, 2013
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saying deficits decline as a percentage of gdp could dip as low as 2.4% in 2015. then they start to rise again in 2016. that 10-year-old cbo deficit projection increased overall to 4.6 trillion for the 2013 decade up from $20.2 trillion in it's previous. cbo sees real gdp growing 1.4% in 2013, the sub died growth limits businesses to hire more workers, cbo projecting unemployment rate to stay near 8% this year, also expecting unemployment rate to remain above 7.5% through 2014. debt and deficits will be larger, the cbo says, if current laws were modified and rising health care cost and increased federal health care subsidies, spending cuts and higher taxes with offset deficit increases long-term says the cbo. over and over again this report talks about those short-term budget decisions on the horizon including march 1st, the automatic spending reductions, sequester. what does congress and the white house do about the expiring continuing resolution in late march, funding for the operations of government and, divorce, the next round of the debt limit debate due to h
saying deficits decline as a percentage of gdp could dip as low as 2.4% in 2015. then they start to rise again in 2016. that 10-year-old cbo deficit projection increased overall to 4.6 trillion for the 2013 decade up from $20.2 trillion in it's previous. cbo sees real gdp growing 1.4% in 2013, the sub died growth limits businesses to hire more workers, cbo projecting unemployment rate to stay near 8% this year, also expecting unemployment rate to remain above 7.5% through 2014. debt and...
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Jun 11, 2013
06/13
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right now i'm not at all worried about deficits. but i don't think the deficit should be going up in the outyears and if you look at the projections, that's exactly what you see. you can't blame obamacare by the way. that's a mistake. i'll tell you why. if you net out the taxes, in order to -- >> i can and i will. >> larry, you're a former omb. >> i am. >> if you net out the spending and the taxes according to the congressional budget office, the affordable care act lowers the budget deficit by $100 billion over the next ten years. that's macroeconomic chicken feed. >> jimmy, help me on this. i don't have much time. >> the one thing we haven't heard, that most of the so-called terrible austerity and figures c fiscal drag is coming from tax hikes. if you're so worried, you should be calling for low aer taxes. >> we could debate it forever. all eye say is this. you limit government spending, lower marginal tax rates and that would be marginal corporate tax rates, the economy would grow twice as fast from 2% to 4%. and that would reduc
right now i'm not at all worried about deficits. but i don't think the deficit should be going up in the outyears and if you look at the projections, that's exactly what you see. you can't blame obamacare by the way. that's a mistake. i'll tell you why. if you net out the taxes, in order to -- >> i can and i will. >> larry, you're a former omb. >> i am. >> if you net out the spending and the taxes according to the congressional budget office, the affordable care act...
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May 17, 2013
05/13
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the deficit is coming down? >> i think it's great the deficit is coming down, government taxation melton freedman said, it's true, you can't spend yourself into prosperity. if you look at government spending as a share of gdp. it tracks growth almost exactly. having the deficit come down is wonderful news. >> all right. so if people are saying this fiscal restraint is like 1936-1937, all right, where we had a recession inside a depression. yeah, i think that's a lot of gar back. i'll tell you why, i want to hear you first. >> well, the taxes went up through the great depression. the way the world works, it outlines it exactly, all these people in the great depression have missed the tax variable totally. bernanke, even milton freedman missed it in the freedom of the united states. it's taxes that really caused the economy to slow down and cutting taxes in aggregate is cutting government spending. government doesn't create resource, larry, it redistributes them. every dollar they spend for one person, they take a
the deficit is coming down? >> i think it's great the deficit is coming down, government taxation melton freedman said, it's true, you can't spend yourself into prosperity. if you look at government spending as a share of gdp. it tracks growth almost exactly. having the deficit come down is wonderful news. >> all right. so if people are saying this fiscal restraint is like 1936-1937, all right, where we had a recession inside a depression. yeah, i think that's a lot of gar back....
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Jan 3, 2013
01/13
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let's organize this conversation about deficits. i've been listening to it all night and it's all over the map. i hope you guys would agree with me that the goal should be to stabilize the debt to gdp ratio in the ten-year budget window. in order to do that, i think you need about -- and jimmy said this number. i think you need about 1.2 trillion more of deficit reduction. i think it would make sense to split that between tax revenues and spending cuts. >> but jimmy p -- all right, i'm a supply side. i'm a reagan supply side. you want to get these ratios down, spending to gdp, deficits to gdp, debt to gdp. why don't we grow that denominator, call it gdp. why don't we create incentives for ordinary people to work a little harder at the margin, maybe take a risky investment, maybe start up a new business, even a small business. we're not doing that. that's why we're not going to get the gdp and the growth effect. >> if you want to do something about the debt, all right, the wrong way to do it is making it, you know, $1 of tax hike for
let's organize this conversation about deficits. i've been listening to it all night and it's all over the map. i hope you guys would agree with me that the goal should be to stabilize the debt to gdp ratio in the ten-year budget window. in order to do that, i think you need about -- and jimmy said this number. i think you need about 1.2 trillion more of deficit reduction. i think it would make sense to split that between tax revenues and spending cuts. >> but jimmy p -- all right, i'm a...
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Apr 25, 2013
04/13
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our deficits right now are 40% of our revenue. and in three years' time, if interest rates just slowly normalize, the interest expense will be 40% of our entire revenue. that is a ticking time bomb. that reminds me of greece. >> how come the market hasn't reacted yet? this is not new information. it's all very accurate and smart, that you're bringing it to the forefront. but how come the markets haven't reacted? >> all i would tell you to do, maria, put up a chart of the greek ten-year note and watch how it merrily bounced along at 3.5% and closed its eyes to the impending doom, and in the matter of about a year, was up 240%. that was, i'm sorry -- >> the u.s. economy is not even close to greece. >> why are we not close to greece? >> because our debt-to-gdp ratio right now is about 70% -- >> no, no, no, i can't let you get away with it. it's over 100 if you include the intergovernmental debt. let's use all of the debt. >> but we only have to worry about the money that we borrow -- >> so you're going to tell people who paid into so
our deficits right now are 40% of our revenue. and in three years' time, if interest rates just slowly normalize, the interest expense will be 40% of our entire revenue. that is a ticking time bomb. that reminds me of greece. >> how come the market hasn't reacted yet? this is not new information. it's all very accurate and smart, that you're bringing it to the forefront. but how come the markets haven't reacted? >> all i would tell you to do, maria, put up a chart of the greek...
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Apr 10, 2013
04/13
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the plan aims to cut the deficit through a combination of further tax hikes. that's angered republicans and cuts in entitlement programs such as social security, medicare which is also got democrats up in arms. joining us from new york is director at hamilton place strategies and in washington, ben white and judith is with us as well, president of the rockefeller foundation. thanks for joining us. tony, let's kick off with you first of all. is there anything that will form the basis for wider agreement on the deficit or not? >> well, look, maybe the suspect getting credit for putting forward in a formal way the cpi and social security and trying to make a middle path here. it's sort of in this environment kind of middle path to nowhere given where both democrats and republicans are in congress and where they are from their own budgets. hard to see that. at least it gives for the president's purposes a rhetorical path going into the summer and those fiscal debates. >> what do you think, ben? >> i agree with tony. it's a nice phrase. middle path to nowhere. i do
the plan aims to cut the deficit through a combination of further tax hikes. that's angered republicans and cuts in entitlement programs such as social security, medicare which is also got democrats up in arms. joining us from new york is director at hamilton place strategies and in washington, ben white and judith is with us as well, president of the rockefeller foundation. thanks for joining us. tony, let's kick off with you first of all. is there anything that will form the basis for wider...
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Apr 16, 2013
04/13
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we have a massive deficit. >> well, we had a 6% of gdp deficit in 2006. it's now 3% of gdp. and if some of the economists' projections are correct, we go into surplus by 2020. that's what the market thinks. it could go wrong and i wouldn't sell all my gold at this point. but the way the market is going, we are likely to have a trade surplus or at least a deminimus deficit and that means our international credit is going to be terrific and there is no dollar crash. >> peter schiff, let me just ask you. look, there has been an awful lot of pessimism and i've been a credit of ben bernanke. and it's interesting to me and i want to get your reaction. the big inflation never came. the total collapse of the dollar never came. in fact, the dollar, against broad trade-weighted indexes is about what it was four or five years ago. gone up and down, hasn't really moved. this pumping of the money supply, most of the banks didn't use the reserves. and the inflation rate, heck, today, i think the year on year cpi, 1.3%. in other words, a lot of the doom and gloom collapsed the dollar, coll
we have a massive deficit. >> well, we had a 6% of gdp deficit in 2006. it's now 3% of gdp. and if some of the economists' projections are correct, we go into surplus by 2020. that's what the market thinks. it could go wrong and i wouldn't sell all my gold at this point. but the way the market is going, we are likely to have a trade surplus or at least a deminimus deficit and that means our international credit is going to be terrific and there is no dollar crash. >> peter schiff,...
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Feb 12, 2013
02/13
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reduction. >> howard dean is more of a deficit hawk? this year's deficit 800 billion and next year's 600 billion. short-term phenomenon and there's a report of health care costs down now, and i don't know if it's a structural or cyclical spin. >> i've been on this point for a while so i'm glad it's getting broader attention. >> health care costs are declining. >> the rate of growth is much more slowly. it's been several years so it's harder to write it off as just kind of a fleeting moment, and if it continues, that has a far larger impact on the long-term deficit than anything the guys in washington are going to put aside. >> that's why the president's rhetoric on taxes might matter to wall street this time >> good to see you guys. thank you, both. >> thanks, peter. thank you, ron. >> tune into the state of the union right here on cnbc beginning at 9:00 p.m. eastern time. carl kwinquintanilla and john harwood hosting our coverage. >> the market is up above 14,000 with a gain of 52 point on the dow. >> we'll see if it stays there. the f
reduction. >> howard dean is more of a deficit hawk? this year's deficit 800 billion and next year's 600 billion. short-term phenomenon and there's a report of health care costs down now, and i don't know if it's a structural or cyclical spin. >> i've been on this point for a while so i'm glad it's getting broader attention. >> health care costs are declining. >> the rate of growth is much more slowly. it's been several years so it's harder to write it off as just kind...
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Feb 6, 2013
02/13
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so that's 60% of the deficit right there. so this stuff about cutting taxes and that's going to stimulate the economy, this is supply side economics. >> it is. >> very much -- >> and it worked in the '80s under reagan and the '90s under bill clinton. >> reagan ran enormous deficits and clinton surplus. >> bill clinton cut spending with newt gingrich. not tax rates. never. >> the tax increases have happened. the tax increases have happened. that part of the balance is there. now it is time to look at the other side which is spending cuts and entitlement reform. that's what hasn't come yet. >> i have to get out. thanks very much. appreciate it. you're both great. so are house republicans prepared to put up a spending cut fight with the president some let's get t? let's get the gop perspective. mr. roscom, what is your response to president obama's rift today? >> well, look, this is president obama's sequester to pay for the old ket credebt ceiling deal. that being said, the president also in december last time you and i talked
so that's 60% of the deficit right there. so this stuff about cutting taxes and that's going to stimulate the economy, this is supply side economics. >> it is. >> very much -- >> and it worked in the '80s under reagan and the '90s under bill clinton. >> reagan ran enormous deficits and clinton surplus. >> bill clinton cut spending with newt gingrich. not tax rates. never. >> the tax increases have happened. the tax increases have happened. that part of the...
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Feb 22, 2013
02/13
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as long as the savings are not used to finance deficit spending. now i didn't know the republicans right now are open to closing loopholes and if we close the loophole i would like to take that money and put it into lower marginal tax rates. what is boehner's man saying. why so hinting they would open to close loopholes? >> what he's talking about -- i was going to add he doesn't have any authority to raise taxes. boehner will lose his caucus if he's for any tax increase. >> hi, rogers. good to see you. >> sorry. you said talk. i thought you said talk. >> go ahead. bob costa, tell me this isn't true. this can't be true they are not talking about another tax hike. >> they think they got burned about that fiscal cliff tax that at least let some of those new revenues come in with the bush tax rates expiring. what boehner spokesperson is speaking about the tax reform. nobody expects major tax reform happen in the next week. to your opinion, at least it's a good thing. >> a great thing. keith boykin do you have any problem with my sermon on the mound? d
as long as the savings are not used to finance deficit spending. now i didn't know the republicans right now are open to closing loopholes and if we close the loophole i would like to take that money and put it into lower marginal tax rates. what is boehner's man saying. why so hinting they would open to close loopholes? >> what he's talking about -- i was going to add he doesn't have any authority to raise taxes. boehner will lose his caucus if he's for any tax increase. >> hi,...
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Feb 13, 2013
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so he opened the speech with an indication for deficit reduction. said i'm going to support defic deficit reduction, willing to cut medicare but then went after initiative after initiative. not big expensive initiatives, but ones designed to put republicans on the defensive and defy them to oppose him on strengthening education. manufacturing incentives. the kind of tax reform that he's in favor. the kind of trade initiatives he's in favor. the minimum wage. that's probably the biggest s g singlel , most consequential. to raise from $7.25 to $9, would take it to the real wage level it stood at the beginning of the reagan administration and the trade initiative, the transatlantic partnership to match the transpacific partnership. >> did the order in which those things came, saving guns and voting rights toward the end, does that give a clue as to his priorities in pursuing these different parts of his agenda? >> i don't think so. i think that was about building an emotional momentum toward the end of the speech. and you saw the emotion in the crowd w
so he opened the speech with an indication for deficit reduction. said i'm going to support defic deficit reduction, willing to cut medicare but then went after initiative after initiative. not big expensive initiatives, but ones designed to put republicans on the defensive and defy them to oppose him on strengthening education. manufacturing incentives. the kind of tax reform that he's in favor. the kind of trade initiatives he's in favor. the minimum wage. that's probably the biggest s g...
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Jan 4, 2013
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i'm very much against what's called a structural budget deficit, a budget deficit that grows when the economy is at full employment, but i'm very much a cyclical budget deficit that grows when the economy needs that kind of temporary fiscal stimulus. >> katherine, what's your criticism of that analysis? >> listen, of course, it's an oversimplification to compare the federal government which has very sophisticated budget tools to a house hold. at the same time, the fundament ainl sight is absolutely right. we are spending way more than we have, and when we run out of, you know, credit, when our credit cards are maxed out we're asking for another credit card, applying for another credit card with an even worse rate. you don't have to go into more debt. you could cut spending. >> but his point is you don't do it in the middle of a weak economy. >> you wait until it's growing. >> wait until the economy is growing and that's when you cut. >> he acknowledged this is basically a keynesian point of view and not everybody agrees so that is one argument, but other argument is to say so much of
i'm very much against what's called a structural budget deficit, a budget deficit that grows when the economy is at full employment, but i'm very much a cyclical budget deficit that grows when the economy needs that kind of temporary fiscal stimulus. >> katherine, what's your criticism of that analysis? >> listen, of course, it's an oversimplification to compare the federal government which has very sophisticated budget tools to a house hold. at the same time, the fundament ainl...
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Oct 8, 2013
10/13
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all this adds to our deficits, doesn't subtract from it. we can't afford these manufactured crises every few months. as i said this isn't even about deficits or spending or budgets. our deficits are spending at the fastest pace in 60 years. the budget that the senate passed is at republican spending levels. it's their budget. that democrats were willing to put votes on to make sure the government was open while negotiations took place for a longer term budget. the way we got to this point was one thing and one thing only and that was republican obsession with dismantling ated forble care act and denying health care to millions of people. that law ironically is moving forward. so, americans democrats and republicans agree health care should not have anything to do with keeping our government open or paying our bills on time which is why i will sit down and work with anyone of any party, the not only to talk about the budget but ways to improve the health care system. i'll talk about ways we can shrink our long-term deficits. i'll also want t
all this adds to our deficits, doesn't subtract from it. we can't afford these manufactured crises every few months. as i said this isn't even about deficits or spending or budgets. our deficits are spending at the fastest pace in 60 years. the budget that the senate passed is at republican spending levels. it's their budget. that democrats were willing to put votes on to make sure the government was open while negotiations took place for a longer term budget. the way we got to this point was...
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Feb 26, 2013
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reduction, or front-loaded deficit reduction will lead to declines in gdp, which leads to more deficits. that's a truism that economists like to emphasize. >> you mentioned earlier, steve, that he was talking not just to congress, but to the hawks on his committee. what is that message specifically and how strongly worded is it? >> okay. so the federal reserve in september decided to make a pretty radical policy change, as we watched the fed chairman make his way to the table to testify. and that change is, we'll keep doing qe until we get substantial improvement in the labor market. there was a little tag line on the end that said, we're going to keep account of costs and the efficacy of this. for some members of the fmoc, they have raised the cost to be more important than the substantial improvement in the labor market. there's this debate going on inside of the fed right now how much those costs matter. and what i think the fed chairman is doing is saying, look, i have looked at this, and i believe the benefits outweigh the costs. that's the significance of that right there. >> stev
reduction, or front-loaded deficit reduction will lead to declines in gdp, which leads to more deficits. that's a truism that economists like to emphasize. >> you mentioned earlier, steve, that he was talking not just to congress, but to the hawks on his committee. what is that message specifically and how strongly worded is it? >> okay. so the federal reserve in september decided to make a pretty radical policy change, as we watched the fed chairman make his way to the table to...
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May 15, 2013
05/13
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the history of deficit is they tend to understate it. if you forecast it up three, up three, up three, then if you jack your forecast down to minus one then you look like a total goon. what the cbo will say is up three, up three, up three, they tend to understate their revisions, what we saw yesterday was probably about half of the revision that they really would've made if they went all in and did the fully rational forecast. probably throughout the rest of the year, you're going to see bigger reductions in the deficits about three months from now. and that's going to have a good effect on markets, it's going to help the fed have some space to ease up on quantitative easing and so on. >> do you share robert's concerns about the impact of the sequester and second half of the year? >> no, i do not. we're losing about 1.5% of gdp growth. about 1% is the tax hike at the end of the year and half of that is the sequester. so far, we've overpowered that with the wealth effect and the absence of the hippopotamus, and i think that'll continue. >
the history of deficit is they tend to understate it. if you forecast it up three, up three, up three, then if you jack your forecast down to minus one then you look like a total goon. what the cbo will say is up three, up three, up three, they tend to understate their revisions, what we saw yesterday was probably about half of the revision that they really would've made if they went all in and did the fully rational forecast. probably throughout the rest of the year, you're going to see bigger...
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Oct 31, 2013
10/13
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health care reform will not add one dime to our deficit. as i just noted, not only is it not adding to our deficit, it's actually reducing it. the reform we seek would bring $1.3 trillion in deficit redex ov reduction over the next two decades. >>> news alerts is sponsored by expedia. could save you fifteen percent or more on car insurance. mmmhmmm...everybody knows that. well, did you know that old macdonald was a really bad speller? your word is...cow. cow. cow. c...o...w... ...e...i...e...i...o. [buzzer] dangnabbit. geico. fifteen minutes could save you...well, you know. >>> welcome back. live to "the kudlow report." here's some of the top developing news stories on obama care tonight. it's possible that a year from now, that 156 million americans with employer health coverage, 93 million of them could be facing cancelations and forced on to the exchanges and medic d medicaid. more on that in just a moment. >>> we also have a major business angle to the obama care debacle. some major players in health insurance are opting out of the exch
health care reform will not add one dime to our deficit. as i just noted, not only is it not adding to our deficit, it's actually reducing it. the reform we seek would bring $1.3 trillion in deficit redex ov reduction over the next two decades. >>> news alerts is sponsored by expedia. could save you fifteen percent or more on car insurance. mmmhmmm...everybody knows that. well, did you know that old macdonald was a really bad speller? your word is...cow. cow. cow. c...o...w......
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Jan 2, 2013
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you know in november, the deficit was $172 billion. that was 25% higher than the november deficit of last year, and that's because -- not because revenue -- revenue was increased by 10 billion, but it was a $44 billion increase in spending. these people have no idea how to control spending. now they set us up for a fiscal canyon come march, and somebody better find barack obama in hawaii and ask him what does he mean he won't have a debate over the debt ceiling? is he going to raise that ceiling by executive decree? >> we'll find out. >> quincy, too, i want to bring you into this discussion here. what michael just highlighted was his big concern over deficit debt levels, that's fine, but we also know that going over the fiscal cliff, allowing some of these cuts to happen does mean cuts to the gdp. first off, do you like the cuts for tween, especially given some of the concerns that we've just raised about the end of the first quarter? >> yeah. we do, absolutely. coming into the -- the real fiscal cliff debate where it was off again, on
you know in november, the deficit was $172 billion. that was 25% higher than the november deficit of last year, and that's because -- not because revenue -- revenue was increased by 10 billion, but it was a $44 billion increase in spending. these people have no idea how to control spending. now they set us up for a fiscal canyon come march, and somebody better find barack obama in hawaii and ask him what does he mean he won't have a debate over the debt ceiling? is he going to raise that...
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Oct 31, 2013
10/13
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the deficit now at a five-year low. is it possible that things aren't so terrible after all, that the fiscal state of the country isn't as bad as some people say it is? so what's it mean for the economy and for stocks, we're going to give you the answers in three minutes. >>> and we have the first and only video of the first bombing run of that new f-35 fighter jet. the planes are designed to replace the f-16s as the backbone of american air power. stew is out today. we're joined by kayla tausche. kayla? >> thanks, tyler. we start with a story that impacts anyone who flies. that phrase "please turn off your electronic devices" we hear every single time before takeoff, that may soon be a thing of the past. soon. not quite yet. shares of goinggo up big. they don't give you wi-fi below 10,000 feet which is what this rule changes, but the idea is maybe they will. phil lebeau is in chicago reporting on the faa's new policy. a long time coming, phil, but fun to see that it finally happened. >> you know, kayla, you fly a lot l
the deficit now at a five-year low. is it possible that things aren't so terrible after all, that the fiscal state of the country isn't as bad as some people say it is? so what's it mean for the economy and for stocks, we're going to give you the answers in three minutes. >>> and we have the first and only video of the first bombing run of that new f-35 fighter jet. the planes are designed to replace the f-16s as the backbone of american air power. stew is out today. we're joined by...
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Apr 10, 2013
04/13
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now on the topics of deficits, despite all the noise in washington, our deficits are already falling. over the past two years i signed legislation that will reduce our deficits by more than $2.5 trillion. more than two-thirds of it through spending cuts, and the rest through asking the wealthiest americans to begin paying their fair share. that doesn't mean we don't have more work to do. but here's how we finish the job. my budget will reduce our deficits by nearly another $2 trillion so that all told we will have surpassed the goal of $4 trillion in deficit reduction that independent economists believe we need to stabilize our finances. it does so in a balanced and responsible way. a way that most americans prefer. both parties agree ha the rising cost of caring for an aging generation is the single largest driver of our deficits. and for those like me who deeply belief in our social insurance programs think it's a core thing that our government needs to do if we want to keep medicare working as well as it has and want to preserve the ironclad guarantee that medicare represents then
now on the topics of deficits, despite all the noise in washington, our deficits are already falling. over the past two years i signed legislation that will reduce our deficits by more than $2.5 trillion. more than two-thirds of it through spending cuts, and the rest through asking the wealthiest americans to begin paying their fair share. that doesn't mean we don't have more work to do. but here's how we finish the job. my budget will reduce our deficits by nearly another $2 trillion so that...
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Jan 2, 2013
01/13
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effect of the fiscal cliff on deficit. so what's the problem, steve? it raises the deficit. not so fast. all of that is relative to the march 2012 baseline of what would have happened had the bush tax cuts all gone away. nobody thought that would happen but that's the law. there is another way it look at it, which is what happened to the deficit as a percent gdp and that's how the market looks at it. we did these calculations. these are back of the envelope stuff. 2012, 7%, 7.2%. had the old law stayed in effect, we would have 3% point drop in gdp. but that would have been recession. no one thought that would happen. instead what you will get is more revenue relative to what you had last year, estimated, so you go down about 6%. then if you saw what happened in 14. then overtime, just so you know, doing all this stuff will add to interest cost over time about $400 billion over ten years which escalate like this as you go forward. but one more thing, i want to talk about this thing. so what happens to the deficit? the question is whether both sides will assist on more deficit
effect of the fiscal cliff on deficit. so what's the problem, steve? it raises the deficit. not so fast. all of that is relative to the march 2012 baseline of what would have happened had the bush tax cuts all gone away. nobody thought that would happen but that's the law. there is another way it look at it, which is what happened to the deficit as a percent gdp and that's how the market looks at it. we did these calculations. these are back of the envelope stuff. 2012, 7%, 7.2%. had the old...
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Jan 10, 2013
01/13
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look at the spending and deficit and debt he created. how can we give him the treasury? >> well, i'm chortling here because of your outrage over the $1 trillion coin matched with your outrage over jack lew, i can't figure out which is mor amusing. should we put that in the democratic party platform? >> it already is, that's what's amusing. >> very good, very good. >> let's talk about jack lew for a second. normally this position should go to somebody from the finance world. i think that, unfortunately, that's very difficult to do that because the finance world had a lot to do with the crash in 2008. but normally those are the best people for this job. for treasury. and if you look at george w. bush, his first two people were quite able, especially paul o'neill, but they did not, were not able to do the treasury the way paulson did, which helped us get out of this dreadful problem that we had that started in 2008. so it is good to have a finance person. on the other hand, i believe you're wrong about omb. jack lew's been a terrific director of omb and most importantly, he
look at the spending and deficit and debt he created. how can we give him the treasury? >> well, i'm chortling here because of your outrage over the $1 trillion coin matched with your outrage over jack lew, i can't figure out which is mor amusing. should we put that in the democratic party platform? >> it already is, that's what's amusing. >> very good, very good. >> let's talk about jack lew for a second. normally this position should go to somebody from the finance...
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Jan 10, 2013
01/13
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i'm not quite sure how he says it face knows budget deficit. because according to the latest numbers, ty, from the controller's office, which came out last week, california, as of december 31st, had a cash deficit totaling $24.2 billion, which was cover bed borrowing. . so the controller said the debt is 24.2 billion. the governor says no deficit for the first time since the recession. >> is this his budget for fiscal year? excuse me, jane. is this his budget for fiscal year 2013? and when does that start? does it start july 1? >> starts july 1st, yes. he is now presenting his budget starting july 1. >> jane, i tell you, i'm stunned. >> yeah. >> it doesn't make any sense given the numbers you've been following so closely for the past few years. i'm anxious to see how they did it. are you as surprised as i am? >> i am anxious too. and thrilled if it's true. you know, the votes of california did pass an income tax hike for the higher end, which at the very high end goes up to 13.3%. also sales tax hike which is retroactive to january 1st of a thi
i'm not quite sure how he says it face knows budget deficit. because according to the latest numbers, ty, from the controller's office, which came out last week, california, as of december 31st, had a cash deficit totaling $24.2 billion, which was cover bed borrowing. . so the controller said the debt is 24.2 billion. the governor says no deficit for the first time since the recession. >> is this his budget for fiscal year? excuse me, jane. is this his budget for fiscal year 2013? and...
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Mar 1, 2013
03/13
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and deficit reduction are. the good thing about america is that sometimes we get to these bottlenecks and we get stuck and you have these sharp partisan fights. but the american people pretty steadily are common sense and practical. and eventually that common sense, practical approach wins out. i think that's what will happen here as well. in the meantime, just to make the final point about the sequester, we will get through this. this is not going to be an apocalypse, as some have said. it's just dumb. and it's going to hurt, it's going to hurt individual people and hurt the economy overall. but if congress comes to its senses a week from now, a month from now, three months from now, then there's a lot of open running room there for us to grow our economy much more quickly. and to advance the agenda of the american people dramatically. and so this is a temporary stop on what i believe is the long-term outstanding prospect for american growth and greatness. thank you very much, everybody. >> calling the looming
and deficit reduction are. the good thing about america is that sometimes we get to these bottlenecks and we get stuck and you have these sharp partisan fights. but the american people pretty steadily are common sense and practical. and eventually that common sense, practical approach wins out. i think that's what will happen here as well. in the meantime, just to make the final point about the sequester, we will get through this. this is not going to be an apocalypse, as some have said. it's...
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Apr 30, 2013
04/13
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>> mandy, a real rethink going on of aitude toward the sequester and deficit reduction, as that deficit reduction begins to hurt the economy. our survey, 46 responsibilitiants this time around in the month of aim. we asked them about the deficit and how urgent they saw it to be. 80% in january, 67 in march said we need a plan now. only 25% says the u.s. -- a couple years, 4% said no need. look at the april results. a big change here. 52%, gone down from 80 to 52. those who say the u.s. has time to enact it, up to 39%. even some talk in here, not a lot, just 9%, but higher than it was. it starts to rival this 52%. big change in the attitude towards the deficit. how about attitudes toward the sequester and congress? you could see here pretty much the way it was. should they continue it as it is? this is the april results. 35%, continuing but change the makeup. still the same as it was back march compared to april. now take a look at what they're saying. a little bit more support, and less support. i think that's the key right here, less support from 20% to 9%, say we need more cuts now. a
>> mandy, a real rethink going on of aitude toward the sequester and deficit reduction, as that deficit reduction begins to hurt the economy. our survey, 46 responsibilitiants this time around in the month of aim. we asked them about the deficit and how urgent they saw it to be. 80% in january, 67 in march said we need a plan now. only 25% says the u.s. -- a couple years, 4% said no need. look at the april results. a big change here. 52%, gone down from 80 to 52. those who say the u.s....
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Feb 19, 2013
02/13
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maybe the deficits are going to shrink. we're seeing this on the stateside and it takes your breath away. i know my new jersey governor, our new jersey governor, governor christie is talking about perhaps things are better. at a time, i look at all the receipts. i wonder if they're be more bountiful going back to the sequester. let's be clear, this health care and social programs, i don't know a soul who wants those. >> civilian layoffs in the military, 800,000 people losing their work for some period of time. >> i'm saying the ceos are saying, look, the big issue was the tax code and the ee quester of the southern congress will figure out a way to get the money to them, the northern and california congressman will be able to figure out how to restore the money for the social programs. but there is a sense that perhaps our deficit is shrinking even as we talk. but you will know more because you'll have simpson and bowles. >> see what they say. again, talking to john harwood at the top of the hour. >>> google, fresh 52-week
maybe the deficits are going to shrink. we're seeing this on the stateside and it takes your breath away. i know my new jersey governor, our new jersey governor, governor christie is talking about perhaps things are better. at a time, i look at all the receipts. i wonder if they're be more bountiful going back to the sequester. let's be clear, this health care and social programs, i don't know a soul who wants those. >> civilian layoffs in the military, 800,000 people losing their work...
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Feb 13, 2013
02/13
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you have spending cuts tax cuts and deficit tut cuts and debt cuts. how did he do it? what is different today than back in the coolidge era. we could do it today. that is what i took away from this book. he did it by saying no and making it cheer that when you are caught and say know you are being father christmas. he got the government out of the way. we'll acknowledge that and i personally through temperment even though it is hard, coolidge kennedy reagan. the tax revenues by the rich. what is kind of distressing when you read to think that president obama, on the spending right now. will republicans stick to these cuts, they have to get out of the fetal position on cutting spending and they have got to do the sequester. 5%, they can absorb these cuts and it has to happen. i read your books and you make great detailed mention of how coolidge sat around with his budget director cutting spending because they believed that it was good for economic growth but i don't hear that today. we expect too little of american peoples. americans know that we have to cut. we know if
you have spending cuts tax cuts and deficit tut cuts and debt cuts. how did he do it? what is different today than back in the coolidge era. we could do it today. that is what i took away from this book. he did it by saying no and making it cheer that when you are caught and say know you are being father christmas. he got the government out of the way. we'll acknowledge that and i personally through temperment even though it is hard, coolidge kennedy reagan. the tax revenues by the rich. what...
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Apr 26, 2013
04/13
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we had massive deficits. part of the plan all along was fiscal recollect tude, you couldn't -- fiscal rectitude, you couldn't -- >> just like the debates we had back then, you had 2 trillion worth of deficits during the bush-reagan 12 years. the economy grew at 3%. at the end, the deficit was still 4% gdp. >> the deficit was less than 2% of gdp. that boom continued into the '90s, david. >> that's not even right or even close. >> rethink -- look i think you got a point about the 2000s. i think you got a second point about bad monetary policy, those are good points. i think you got a good point about crony capitalism. all good points. i think you are mistaking the benefits of deregulation in the ''80s and '90s. dave stockman, author of "the great deformmation and capitalism in middle america." we have another set two. that's all right. we can all take it. i wish you good luck on the book. i'm larry kudlow. she knows you like no one else. and you wouldn't have it any other way. but your erectile dysfunction - yo
we had massive deficits. part of the plan all along was fiscal recollect tude, you couldn't -- fiscal rectitude, you couldn't -- >> just like the debates we had back then, you had 2 trillion worth of deficits during the bush-reagan 12 years. the economy grew at 3%. at the end, the deficit was still 4% gdp. >> the deficit was less than 2% of gdp. that boom continued into the '90s, david. >> that's not even right or even close. >> rethink -- look i think you got a point...
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Oct 17, 2013
10/13
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we have a deficit/debt problem but that's post 2020. almost entirely related to health care costs and to -- >> the longer you wait to attack those problems the more difficult and draconian -- >> absolutely. but if the cost of addressing them now is this brinkmanship and taking it to the edge and not going anywhere, then that's in my view, that's much worse. >> good for the short-term, not for the long-term. if you're going to be at the point taking things away from people, the more they can plan for the future. >> let me say this, i think if we get stronger growth, and i think we can. i think we're on the verge of it if we get rid of this brinkmanship, good things happen. the fiscal situation could look better than we anticipate. that's what happened in the late 1990s, we got to a surplus and no one anticipated that. >> mark, we'll see you back in studio soon. we want to get those numbers. >> i want them too. >> andrew, over to you. >> come up -- we've got a number of people who voted yes on all of this last night. rob portman, republic
we have a deficit/debt problem but that's post 2020. almost entirely related to health care costs and to -- >> the longer you wait to attack those problems the more difficult and draconian -- >> absolutely. but if the cost of addressing them now is this brinkmanship and taking it to the edge and not going anywhere, then that's in my view, that's much worse. >> good for the short-term, not for the long-term. if you're going to be at the point taking things away from people, the...
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Jul 30, 2013
07/13
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why has concern over the deficit come down? well the deficit has come down. it's now around 4 or 5% gdp. it had been 10%. it has come down. you have the sequester in place. essentially, have you something, a plan, maybe not the optimum plan. also a concern over reduction in polling we have shown, wall street believes that the sequester and the tax hikes at the beginning of this year were worth about a point to a point-and-a-half of gdp. finally in europe, you can read all about the cnbc survey on cnbc.com. we have more coming up on the mark, how much of taper is built in? so, joe, that itself the story about what whooet wall street thinks about the deficit. a lot less concern than there has been the beginning of this year. >> you have to talk about fannie and fred difficult. you have to talk about automatic people that sold stuff last year because rates were going to go up. that was a one-shot deal, too, right? they took profits because it will mean higher rates this year. it might be, when we report earnings, are these non-recurring items? >> i think some of
why has concern over the deficit come down? well the deficit has come down. it's now around 4 or 5% gdp. it had been 10%. it has come down. you have the sequester in place. essentially, have you something, a plan, maybe not the optimum plan. also a concern over reduction in polling we have shown, wall street believes that the sequester and the tax hikes at the beginning of this year were worth about a point to a point-and-a-half of gdp. finally in europe, you can read all about the cnbc survey...
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Sep 26, 2013
09/13
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current account deficit, 13 billion and the first quarter account revised a deficit of 1.8 billion. what's the significant of that? >> this recovery we're getting in the uk is not over a sustainable variety, necessarily. the uk got this big external deficit in the world and was making a pretty hard slog of narrowing that. i think it doesn't make a lot of difference for the short-term gdp, the growth outlet. but it does highlight the rebalancing of the uk economy, the project that's been delayed a little bit. >> we're never going to rebalance the uk economy. it's pointless. we've got whatever size manufacturing is is the size it is. and i don't see why that's actually going to change a whole lot. >> yeah, well, the necessary points, on the pessimistic side, but i mean, we can grow exports and services, as well. it's been fairly steady. the current account has been fluctuating a lot. a lot of that has to do with the profit of the uk subsidiaries they're owning overseas. it's not all about the uk story. it will take a long time, i think. >> therefore, what do you make of what you're hi
current account deficit, 13 billion and the first quarter account revised a deficit of 1.8 billion. what's the significant of that? >> this recovery we're getting in the uk is not over a sustainable variety, necessarily. the uk got this big external deficit in the world and was making a pretty hard slog of narrowing that. i think it doesn't make a lot of difference for the short-term gdp, the growth outlet. but it does highlight the rebalancing of the uk economy, the project that's been...
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Jun 26, 2013
06/13
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the public has three words for congress when it comes to the deficit. just deal with it t.steve liesman is here with some strong words in the all america survey. steve? >> our survey of 800 americans all across the country, all income groups and regions find the appetite of dealing with the deficit on the rise. let's compare it to the last time we asked this question back in 2010 compared to 2010, 51% said do it now and 45% said wait until the economy improves and now you can see here, the improvement since june 2013. 60%, a nine-point gain and those who are saying wait until the economy improves declining from 45% to 31%. moving on, let's see who has that kind of support for the government. democrats, just around 45%. 80% of reason cans saying deal with it now. independents, a little more towards gop side on this than the democratic side. of a mann can americans, latinos, more towards the democratic side. how about the wealthy and low-income group and wealth saying deal with it now. less than 30,000, 40,000 saying deal with it now. something that might
the public has three words for congress when it comes to the deficit. just deal with it t.steve liesman is here with some strong words in the all america survey. steve? >> our survey of 800 americans all across the country, all income groups and regions find the appetite of dealing with the deficit on the rise. let's compare it to the last time we asked this question back in 2010 compared to 2010, 51% said do it now and 45% said wait until the economy improves and now you can see here,...
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Aug 12, 2013
08/13
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year-to-date deficit is 40% below last year's revenues. spending down 1.9% because of the sequester, and a wind down in defense spending that results from the end or the winding down of the wars in iraq and afghanistan. for investors this matters because the worst declines of government spending are now expected to be in the rear view mirror which could help the growth numbers in the quarters ahead but there's also an impact on the fed. better deficit numbers mean less debt sale by the treasury so if the fed does not taper it will be taking a bigger part of all the debt the government sells. it will be gaining ground or easing further just by staying in place so for reasons it should be clear fed tapering could mean no change in the share of the government debt the fed purchases which means less effect on interest rates. >> very quickly. i want to ask about a treat that was tweeted out earlier today. lower u.s. budget deficits mean lower credit growth which means slower gdp growth. what do you make of that? >> i have to believe that this w
year-to-date deficit is 40% below last year's revenues. spending down 1.9% because of the sequester, and a wind down in defense spending that results from the end or the winding down of the wars in iraq and afghanistan. for investors this matters because the worst declines of government spending are now expected to be in the rear view mirror which could help the growth numbers in the quarters ahead but there's also an impact on the fed. better deficit numbers mean less debt sale by the treasury...
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Sep 27, 2013
09/13
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the budget deficit optimistically, let's say $670 billion, which is a much smaller deficit than we've had the last several years, but if you take out the obama years, $670 billion deficit on the budget for one year, still the largest there is on record. so, to me, bragging about bringing it down so dramatically, the only reason he brought it down northern anybody else is because it was higher than anybody else. and i think the public polls are reflecting the national debt, even though i think much of the dialogue flip-flops between the two. interest rate markets are telling me there's nothing to worry about about what's going on in washington. >> i think the president does understand the difference. i don't know if he messed the two up in his speech just nout but i think his larger point is on raising the debt ceiling is that we have done a lot of debt reduction. republicans have won a lot. we're talking about a spending deal that's a lot less than democrats would want. >> we have done no deficit reduction, though. in 2012 -- >> through sequestration -- >> at the end of 2012 we pulled
the budget deficit optimistically, let's say $670 billion, which is a much smaller deficit than we've had the last several years, but if you take out the obama years, $670 billion deficit on the budget for one year, still the largest there is on record. so, to me, bragging about bringing it down so dramatically, the only reason he brought it down northern anybody else is because it was higher than anybody else. and i think the public polls are reflecting the national debt, even though i think...
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Feb 28, 2013
02/13
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this is not the way to finance the fiscal deficit. i think, again, the symbolism is more to try and boost revenues. just to ensure that the credit outlook of the company itself does not deteriorate. at the same time, they have given out some concessions to boost the domestic economy. so i think overall, it's been a fairly pragmatic, fairly balanced budget, although the gross pouring numbers did surprise the markets on the up side and they're taking it negatively. >> i was just going to say, we're seeing the sensex now down almost 1%. despite what you're laying out here, there's clearly some investor concern about what this means for india. >> well, i think given the 10% surcharge on corporation, there has to be a technical increase in stocks. payments have to be paid back. beyond that, i think it really -- the tendency has been to basically take off budget measure toes try and boost sentiment. that's been the modum operan did i of the current government. because, again, the government has to meet its divestment targets and for that, i
this is not the way to finance the fiscal deficit. i think, again, the symbolism is more to try and boost revenues. just to ensure that the credit outlook of the company itself does not deteriorate. at the same time, they have given out some concessions to boost the domestic economy. so i think overall, it's been a fairly pragmatic, fairly balanced budget, although the gross pouring numbers did surprise the markets on the up side and they're taking it negatively. >> i was just going to...
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Feb 18, 2013
02/13
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we got over the deficits in ten years. oddly enough, if you look at it with a longer view, these things sometimes look very different. >> it just seems we keep trying to win elections. now the word out there is that the dems want to take the house back. they're moving aggressively to make sure the republicans seek cede control of the house of representatives in 2014. do we just keep going from cliff to cliff so that everybody can win re-election? >> michael knows the history on a lot of these elections, midterm elections even better than i do. and i think -- i know democrats may want to do that. i think republicans are really in a good place actually for the midterm elections. you know, democrats have a lot of seats to defend in the senate. and republicans frankly did a very good job, you know, protecting their districts the last couple of census redistricting efforts. so they're in a strong place. but, you know, we still have to find a way to get both of these parties to work together on some issues. some of it is only go
we got over the deficits in ten years. oddly enough, if you look at it with a longer view, these things sometimes look very different. >> it just seems we keep trying to win elections. now the word out there is that the dems want to take the house back. they're moving aggressively to make sure the republicans seek cede control of the house of representatives in 2014. do we just keep going from cliff to cliff so that everybody can win re-election? >> michael knows the history on a...
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Mar 21, 2013
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are we getting our deficits and debts down? if you had to confirm yesterday, growth and the deficits have stalled. we are on a long, hard road to nowhere here in britain. >> so is everybody in the world, on a long, hard road particularly in developed countries. we saw pmi in eurozone suggesting six quarter hers of negative consecutive growth. and it's the trade rather than government spending or consumption, it's lack of trade overseas that's dragged the economy down. >> well, the forecast yesterday made clear that the fiscal tightening here in britain had reduced growth markedly. clearly, the situation is tough for us, as well.. why is it of the g-20 largest economies, only italy and japan have done worse than britain in the last two years? we weren't in the eurozone. the chancellor had the destiny of our country in his hands and he said this plan would work and it hasn't. the international monetary fund have been saying for the last year and a half the chancellor slowed the deficit pace of reduction, a temporary tax cut, brin
are we getting our deficits and debts down? if you had to confirm yesterday, growth and the deficits have stalled. we are on a long, hard road to nowhere here in britain. >> so is everybody in the world, on a long, hard road particularly in developed countries. we saw pmi in eurozone suggesting six quarter hers of negative consecutive growth. and it's the trade rather than government spending or consumption, it's lack of trade overseas that's dragged the economy down. >> well, the...
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Aug 12, 2013
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i don't know that the street was ever that concerned with the level of the deficit. what the street was concerned about were things like government shutdowns and defaults because of politics. that was the thing that really spooked the markets. this deficit, i think the street was right to say, you know what, it will be a natural reduction in the deficit just as the economy comes back and the stimulus that was put together in that package came off. >> is it any secret it is working, that this political back and forth heavy infore bid we're seeing the deficit shrink and the economy get by. >> it depends on what you consider to be working. if you consider an an rex i can being on a diet and working, i am sorry for that plapz but that's the way some people described the notion of cutting the deficit right now. i did work this morning. the last three quarters combined is the biggest government reductions in spending as a percentage of gdp since at least 1980 and probably since the '70s. my data didn't go back that far. we suffered from this. growth suffered from this. >>
i don't know that the street was ever that concerned with the level of the deficit. what the street was concerned about were things like government shutdowns and defaults because of politics. that was the thing that really spooked the markets. this deficit, i think the street was right to say, you know what, it will be a natural reduction in the deficit just as the economy comes back and the stimulus that was put together in that package came off. >> is it any secret it is working, that...
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Feb 28, 2013
02/13
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there is no talk about a deficit reduction replacing the cuts with the deficit reduction package or introducing a new element to it. >> no, no, you're wrong about that. the administration said from the moment they struck that deal in the summer of 2011 that their intention was, a, for it not to go into effect. that was also republicans' attention. but the administration always said the president ran around the country for a year xaping for re-election saying he wanted revenue. and when he struck the revenue deal in late december/january 1st with republicans, he said at that time i tell was not enough revenue and he wanted more revenue. this is not a surprise from somebody. the strategic point from the white house is do they make a mistake by accepting so little with so little revenue that they didn't achieve their goals and now they're coming back to get -- >> so the sequester can't created, it would be spending cuts? >> but is woodward wrong then? >> no. joe, joe, the sequester itself was spending cuts. that is correct. but the administration's intention and republicans' intention was that the
there is no talk about a deficit reduction replacing the cuts with the deficit reduction package or introducing a new element to it. >> no, no, you're wrong about that. the administration said from the moment they struck that deal in the summer of 2011 that their intention was, a, for it not to go into effect. that was also republicans' attention. but the administration always said the president ran around the country for a year xaping for re-election saying he wanted revenue. and when he...
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Jul 9, 2013
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why is the trade deficit still soaring? why? >> by the way, i have to get out. i can't get in. >> there's a manufacturing renaissance. >> why are we losing jobs? >> it's called energy. >> we are producing more with fewer workers. it's amazing. >> by the way, not only are we importing less and less energy, we are going to be exporting more and more energy and it will bring the trade deficit to almost nothing which will give me a strong dollar, king dollar is going to look great. the inflation rate which is now 1% will go to 0% and you'll worry about deflation. >> then we're going to start 3-d printing gold. it will plummet even faster. >> gold is about 1,000 bucks an ounce. thank you, gentlemen. we appreciate it. >>> all hail the state of south dakota. cnbc has just named it as the number one state for business in america. and the man who puts that list together, cnbc's scott cone joins us live from the foot of mount rushmore. he'll explain. hey! did you know that honey nut cheerios has oats that can help lower cholesterol? and it tastes good? sure does! wow. it'
why is the trade deficit still soaring? why? >> by the way, i have to get out. i can't get in. >> there's a manufacturing renaissance. >> why are we losing jobs? >> it's called energy. >> we are producing more with fewer workers. it's amazing. >> by the way, not only are we importing less and less energy, we are going to be exporting more and more energy and it will bring the trade deficit to almost nothing which will give me a strong dollar, king dollar is...
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Apr 5, 2013
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we could see the deficit going under 2%, as percentage of our economy. and it will be done in the right way. not with these harsh sequester cuts, which i think speaker boehner once called devastating. but, instead, sensible entitlement savings, revenues that come from tax reform, that lower tax expenditures and loopholes. i think this is the type of balanced approach. it's not easy. it requires compromise by everyone. but i think it's the type of balance that we need, if not exactly the details we have, this is the type of plan that ultimately we need for a bipartisan compromise. >> and we sort of heard that from mr. carney earlier, as well. let me ask you this, gene. does it include tax increases? >> you know, what the president has in his budget is he'll have tax reforms the that will raise about $580 billion in revenues, together with over $1.2 trillion in spending cuts, including spending in interest savings. so that's what it has. but the reason why we are hopeful that this might be capable of more bipartisan support is that there's no, there's no r
we could see the deficit going under 2%, as percentage of our economy. and it will be done in the right way. not with these harsh sequester cuts, which i think speaker boehner once called devastating. but, instead, sensible entitlement savings, revenues that come from tax reform, that lower tax expenditures and loopholes. i think this is the type of balanced approach. it's not easy. it requires compromise by everyone. but i think it's the type of balance that we need, if not exactly the details...
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Dec 11, 2013
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and how exactly fiscal deficits would pan out. back to you. >> thanks, good to see you. here is a reminder of what's on the agenda in asia tomorrow. no moves are expected. on the data front, we get november cpi. one of congress long's biggest ipos makes its trading debut. >>> still to come, in did i tex has seen a rise in sales. is this enough to make up for the stronger euro? >>> the ukrainian riot police have now left the protest sites in kiev, despite attempts for the ukrainian president to diffuse the standoff. the opposition continued to demand the resignation of the current leadership. the prime minister was quoted as saying this morning, they would need around a 20 billion euro loan from europe if they were to consider signing the deal. >>> and the strong euro, meanwhile, appears to be weighing on the world's biggest clothing retailer. inditex, some of its markets lost value against a single currency. thanks fob joining us. on balance, the sales were pretty much what we expected, right? >> that's right. the third quarter wa
and how exactly fiscal deficits would pan out. back to you. >> thanks, good to see you. here is a reminder of what's on the agenda in asia tomorrow. no moves are expected. on the data front, we get november cpi. one of congress long's biggest ipos makes its trading debut. >>> still to come, in did i tex has seen a rise in sales. is this enough to make up for the stronger euro? >>> the ukrainian riot police have now left the protest sites in kiev, despite attempts for the...
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Jan 29, 2013
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business people want lower spending and lower deficits and loafer taxes. isn't that true? phil, the confidence factor alone, we're not greece. that's going to help us. >> yeah, look, we've still got a tremendous amount of capital on the sidelines. we've essentially got a capital strike, business profits have been very high, but they're not being reinvested. and that's because of all of the uncertainty about this enormous federal government that we've got and whether we're going to get it under control or it's going to continue to have an ever increasing footprint that's going to crowd out the private economy. you've got long-term expectations that are playing into this. and i really think, larry, if they cancel even this small cut, even this $85 billion they say we can't possibly live with that, nobody will expect them to ever pass anything that reduces the size of government as a percent of the economy and as you pointed out correctly, that's the real cost of government for the private economy. >> that's it. that's the deal. dean baker, i just -- if you shrink, let's say
business people want lower spending and lower deficits and loafer taxes. isn't that true? phil, the confidence factor alone, we're not greece. that's going to help us. >> yeah, look, we've still got a tremendous amount of capital on the sidelines. we've essentially got a capital strike, business profits have been very high, but they're not being reinvested. and that's because of all of the uncertainty about this enormous federal government that we've got and whether we're going to get it...
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Jan 15, 2013
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he doesn't care about deficits. he's not going to deal on this. >> you know, a couple of times during the news conference, i was interested in this. president obama said to congress, go ahead, give me the power and i'll issue more debt. that's really what he wants. he wants the power to issue unlimited debt so he can have unlimited spending and eventually he's going to get around to unlimited tax hikes. >> well, to be clear, as you know, when we talk about the debt, the president doesn't get to decide, you know, how much we're spending that's something that rests with congress. but in terms of what kate was saying with respect to, you know, him wanting to not really offer any cuts he's incurred the wrath of his party by offering chain cpi to social security. that's a reindexing of the cost of living index, revising down how much elderly people are getting. and he talk about potential fixes to medicare, potentially raising the age. it is not true that he's not willing to do that. i'll say there are a lot of people on
he doesn't care about deficits. he's not going to deal on this. >> you know, a couple of times during the news conference, i was interested in this. president obama said to congress, go ahead, give me the power and i'll issue more debt. that's really what he wants. he wants the power to issue unlimited debt so he can have unlimited spending and eventually he's going to get around to unlimited tax hikes. >> well, to be clear, as you know, when we talk about the debt, the president...
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Jul 12, 2013
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i think it's good that the deficit is declining. we have a five-year low in the deficit. and spending is actually declining, too, contrary to the complication in the introduction. 47% reduction in spending last month over last year. last year at this time, a $60 billion deficit. we're definitely in the right direction. i challenge jim or anybody to tell me where is all this mammoth spending they're talking about the government is doing? we've been in a period of austerity. >> haven't said a word and being challenged. >> right. putting words in my mouth and attacking the words i never altered. fantastic. that's fantastic. >> we agree, then. right? >> listen, here's what i think. i think the deficit is going down. i think it's going down dramatically. is possible that until 2016 we might even have a surplus. an annual budget surplus. all that is possible. it's fantastic. the problem is that after about 2017, 2018, the deficit's going back up. a huge entitlement problem and every year that we won't, don't deal with the problem makes the fixes more elaborate and expensive. we
i think it's good that the deficit is declining. we have a five-year low in the deficit. and spending is actually declining, too, contrary to the complication in the introduction. 47% reduction in spending last month over last year. last year at this time, a $60 billion deficit. we're definitely in the right direction. i challenge jim or anybody to tell me where is all this mammoth spending they're talking about the government is doing? we've been in a period of austerity. >> haven't said...